Arab News, Sat, Dec 09, 2023 | Jumada Al-Uola 25, 1445
Saudi Arabia’s non-oil activities increase by 3.5% in Q3: GASTAT
Saudi Arabia:
Saudi Arabia’s non-oil activities increased by 3.5 percent in the third quarter
of 2023, compared to the same period of the previous year, as the Kingdom
steadily diversifies its economy away from oil, official data showed.
According to a report released by the General
Authority for Statistics, the Kingdom’s non-activities also rose by 0.4 percent
in the third quarter compared to the previous quarter of this year.
Strengthening the non-oil private sector is
crucial for Saudi Arabia, aligning with the goals outlined in Vision 2030 as the
Kingdom continues to diversify its economy.
However, the report noted that Saudi Arabia’s real
gross domestic product decreased by 4.4 percent year-on-year in the third
quarter, and by 3.2 percent compared to the previous quarter.
This decline is attributed to a 17 percent
decrease in oil activities during the third quarter, following the Kingdom’s
decision, in alignment with the Organization of the Petroleum Exporting
Countries, to reduce oil output.
The commitment to a 500,000 barrels per day output
cut, initiated in April and extended until December 2024, contributed to this
reduction.
Additionally, Saudi Arabia pledged an extra 1
million bpd cut in July, with the Ministry of Energy announcing in November that
this supplementary cut would continue until the end of December 2023.
The GASTAT report indicated that government
activities, the second-highest contributor to real GDP at 15.3 percent, grew by
1.9 percent in the third quarter compared to the same period last year.
However, government activities experienced a 3.8
percent decline in the third quarter compared to the second quarter of this
year.
Furthermore, the report noted positive growth
rates in most economic activities during the third quarter.
Community, social, and personal services
activities grew by 11.8 percent year-on-year, while finance, insurance, and
business services increased by 6.2 percent.
Wholesale and retail trade, restaurants, and hotel
activities also rose by 5.4 percent during the same period.